DUBLIN--(BUSINESS WIRE)--The "Agricultural Tires Market - Growth, Trends, and Forecasts (2019 - 2024)" report has been added to ResearchAndMarkets.com's offering.
The global Agricultural Tire market is expected to grow at a CAGR of 4.88%, during the forecast period, 2019-2024.
Machinery usage in farming has increased significantly over the years, in all parts of the world. The introduction of internal combustion engines and tractors as a power source has revolutionized the agriculture sector, by covering large agricultural areas in a short span of time. Labor-saving technologies, like harvesters and tractors, have been adopted to expand farm operations. Additionally, increased liberalization rate has radically reinforced a structural evolution, resulting in increased adoption of advanced agricultural machinery tools in the agricultural operations.
Furthermore, rise in population along with growing urbanization across the world is driving the demand for food, which is expected to propel the agricultural activities, in turn, boosting the demand for tractors, across the world, consequently influencing the tractor market growth positively.
Combine harvester used for harvesting crops has been in application in developed countries for decades now. Developing countries like Brazil, India, and China have been fast adopting combine harvesters for reducing workload in farming activities.
The demand for heavy-duty tires with a higher load capacity, coupled with significant efficiency and traction, along with lower ground compaction, is one of the major needs that the tire market has to cater to regarding agricultural machinery.
The agriculture tires aftermarket is highly fragmented and poses a high risk to OEMs in this field. Changing agriculture machinery design and increasing penetration into newer unknown terrain are expected to require tires with newer and stronger rubber compounds. Floatation tires, forestry tires, trailer tires, and compound rubber tire with steel flex walls are the trending tires in the market studied.
Scope of the Report
The global agricultural tires market has been segmented by end-user type, application type, and construction type.
Key Market Trends
Increasing Demand for Replacement Tires
In case of OEM tires, after the warranty expiration, it is difficult for farmers to buy the same OEM tires, due to the high price associated with these tires. As a result, the demand for replacement/aftermarket agricultural tires is continually increasing as they are cost-effective compared to OEM tires, and there are numerous options available in the market (with products from different brands).
Additionally, the price of replacement/aftermarket tires ranges from USD 150 to USD 400, while that of OEM tires would be around USD 800 to USD 1,500. And farmers can easily procure these tires through both online and offline sources.
- The prices of these replacement tires may vary depending on either the quantity ordered/purchased or the sources that they are purchased from i.e., online or retail stores.
- The replacement/aftermarket agricultural tires occupy a volume of more than 55% of the market studied, while for OEM, it is 40%-45% of the market studied.
Increasing Demand in the United States Despite Falling Farm Income
Farm tires sales in the United States and Canada have witnessed moderate growth during the first quarter of 2019 and is expected to continue with the same pace, despite a decline in farm income. The growth is mainly driven by the sale of new agricultural machinery, especially the small compact farm tractors. Although the commodity prices remain flat, farmers are demanding replacement tires and new equipment.
As compared to 2017, the farm equipment sales in 2018 have increased in the United States and are as follows:
- More than 18% increase in self-propelled combines
- ~13% increase in 4WD tractors and a 6.8% increase in 2WD tractors
- Under 40 HP tractor sales grew by 9.2%, 40-100 HP tractor sales grew by 1.5% and 100+ HP tractor sales grew by 5.5%.
Other countries in the North American region witnessed sluggish growth in the sale of farm equipment. Although farm tractor sales in Canada increased by 1.7%, other machinery such as 4WD tractors (witnessed a decline of 13%), self-propelled combines (witnessed a decline of 4%) and 40-100 HP tractor sales (witnessed a decline of 3%) in sales.
Agricultural machinery and equipment sales continue to grow over the forecast period as manufacturers continue to develop powerful tractors for increased flexion and low sidewall technology based farm tires.
Major players in the global farm tire market are Firestone, Goodyear, Cooper Tire, Continental Tires, Michelin, Titans, and Bridgestone, among others.
Other companies in the industry include Carlisle Companies Incorp., BKT, Trelleborg Wheel Systems, McCreary Tire & Rubber Co., to maintain market dominance, major companies are focusing on product innovation and customization, to keep the overall product line, with robust offerings to the global farm tire market.
Key Topics Covered:
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Current Market Scenario
4.2 Technology Trends
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Market Drivers
4.5 Market Restraints
5 MARKET SEGMENTATION
5.1 By End-User
5.2 By Application Type
5.2.2 Combine Harvester
5.3 By Construction Type
5.3.1 Bias Tires
5.3.2 Radial Tires
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.3 Continental Group
6.2.5 ATG Tires
6.2.7 BKT Tires
6.2.8 Trelleborg Wheel Systems
6.2.10 Apollo Tires
6.2.12 Armour Tires
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/1kvzd3